What is Shareholder Base? Shareholder base refers to the total number of shareholders in a company. In other words, it is a base of owners (investors) of a company that holds a certain number of stock (shares) in the business distributed proportionally, depending on the amount of investment made. Shareholders are diverse, which means that…
What are Provisions? Provisions represent funds put aside by a company to cover anticipated losses in the future. In other words, provision is a liability of uncertain timing and amount. Provisions are listed on a company’s balance sheet under the liabilities section. Example of a Provision An example of a provision is a product warranty…
What is Investment? Investment is the process of allocating capital to a financial instrument (e.g., stocks, bonds) backed by an expectation to receive certain benefits in the future. In the financial world, the benefit of investment is referred to as a return. The return can be either positive (gain) or negative (loss). Returns can be…
How to Repeat Previous Command in Excel? Repeating commands is an important function in Microsoft Excel while working on a worksheet. Using the Repeat the Previous Command in Excel helps to avoid typing and entering the same command or formula on each and every cell of the sheet. There are two ways by which one…
What are Naked Credit Default Swaps? Naked Credit Default Swaps (CDS) are credit default swaps holdings that are not backed by a sufficient amount of the underlying asset. Holding a naked CDS holding is like getting automobile insurance without owning a car or taking fire insurance on someone else’s house. Naked credit default swaps allow…
What is P/AFFO? The P/AFFO is calculated by adding the P/FFO to any rent increases and subtracting capital expenditures and routine maintenance costs. The P/AFFO is a measure of the financial performance of a REIT (Real Estate Investment Trust). It is equal to the P/FFO adjusted to consider capital expenditures and regular maintenance costs, making…
What is the Offering Price? The offering price is the per share price of publicly issued securities set by an underwriter and at which the shares are available for purchase. Although the term is mostly used in the context of the issuance of shares, it is also applicable in the issuance of other securities, including…
Who is a Monthly Unique Visitor? A monthly unique visitor refers to an individual who visits a website at least once within a given month. The software that tracks and counts website traffic can distinguish between a visitor who visits the site once and a unique visitor who returns to the site often. Multiple visits…
What is the Loan Life Coverage Ratio (LLCR)? The Loan Life Coverage Ratio (LLCR) is a metric used to gauge the ability of a project to completely cover its debt obligations. The LLCR is a very commonly used ratio to assess the potential risks of projects in project finance. This coverage ratio can be taken…
What is the Debt Service Reserve Account (DSRA)? The Debt Service Reserve Account (DSRA), which is a component of a debt service fund, is a reserve account used to pay interest and principal amounts of debt. The DSRA is very important when the cash flow available for debt services (CFADS) is below the necessary amount…
